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Holy smokes, the third week of June is bringing the heat. Unfortunately, it's not the heat we were expecting, instead it comes in the form of protests, bombings and assassinations.
There is more heat on the way later today with the highly anticipated FOMC meeting. It is widely expected Mr. Powell will hold interest rates steady again, but the more interesting part of this meeting will be the release of the Fed's updated dot plot. This will show us the various Fed presidents' updated views on where they believe rates are headed out into the future. This will very likely shake up the 10yr yield one way or another pulling along mortgage rates, so I'll be keeping a close eye for everyone.
As we get into the third week market update, the article of the week below is timely, highlighting the rise in active homes for sale, which we are seeing here locally too. This is welcome for current and future buyers as more supply equals more options. Sacramento County saw a 14.6% increase in active listings from April to May. This is in combination with sellers sitting on the market since the Spring adjusting their prices down to meet the market.
Purchase Applications last week rose 12.5%, so we can see prospective buyers are continuing to reach out to lenders and agents about getting things in order to possibly purchase a home. This is really good to see. Even if rates don't play out as we would like, preparation does not demand purchase. Preparation is simply what it is. A prospective buyer putting themself in a position to strike when and if the time becomes right. If that time does not come, then that's fine too. Preparation is the key.
I'll see you next week.
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